Sometimes, You Just Know


Sometimes, You Just Know

Twenty-two years ago, I was a finance major at the University of Idaho, where I was studying modern portfolio theory and managed a small portfolio for the university's business school. We utilized multiple securities analysis techniques, as well a piece of software – which only the University of Idaho and Stanford University were allowed to use – to construct the portfolio. 

I knew the research we had done for that portfolio would pay off, and I realized we were on the leading edge of great advances in construction. There are just times in life when you, "Just know."  

It was years before I saw anything in the marketplace that constructed portfolios any more efficiently or effectively than we did at that time. Today, you can find more powerful tools on just about any financial site you visit. In fact, the accumulation side of this business has become so seemingly commoditized we now have robo-advice that, according to a recent article in Investment News, is nearly indistinguishable from much of the human advice. 

For years now, I've been studying the decummulation side of portfolio construction and once again in my life I feel like, "I just know." I'm working with a team who’s on the edge of great portfolio construction; only this time, it's for the back nine of life.

Most advisors, as well as many clients, have heard about the risks of retirement, yet portfolios continue to be constructed as if those risks were some kind of old wives tale. If you and your clients have figured out a way to minimize sequence of returns risk, inoculate against interest rate risk and volatility risk, and have eliminated longevity risk, all while keeping tax efficiencies and Social Security maximization in mind, then we will be of little help to you. 

On the other hand, if you would like to have a team to bounce ideas off of, or actually help construct portfolios like these, then please call on us.

The Bottom Line: This business has become too complicated for any one person to be an expert in all areas and still have time to take care of clients. I know our team can be your experts on the leading edge of decummulation for your clients’ retirement portfolio.